NDIC Pays N6.682 Billion to Depositors as at August

The Nigeria Deposit Insurance Corporation (NDIC) said it has paid cumulative insured deposit of N6.682 billion to depositors of 48 liquidated deposit money banks (DMBs) as at August 31, 2012.

The amount represented a slight increase of N46, 000, compared with the N6.636 billion paid to 527,942 depositors as at December 31, 2011.

Managing Director/Chief Executive Officer, NDIC, Alhaji Umaru Ibrahim, made this known in an address delivered on the occasion of the corporation’s special day at the 2012 Lagos International Trade Fair in Lagos.

In addition, Umaru disclosed that a cumulative liquidation dividend of N77.384 billion had been paid to depositors whose claims were in excess of the insured amount in the 48 closed DMBs as at 31st August, 2012, as against N73.553 billion that was paid out during the same period last year.

“Similarly, a total sum of N2.45 billion had been paid to depositors of 103 closed MFBs as at 31st August 2012, as against the sum of N2.25 billion that was paid to the insured depositors of the closed MFBs as at the end of December last year.

“A cumulative liquidation dividend payment to shareholders of Alpha Merchant Bank, Nigeria Merchant Bank and Pan African Bank (in-liquidation) stood at N373.04 million, N620 million and N293 million respectively during the period. This was in addition to the settlement of all and creditors of the three banks (in-liquidation),” the NDIC boss explained.

According to him, deposit insurance has been facing low level of public awareness globally. As a result of that, he said that the corporation mapped out a number of public awareness initiatives including the participation at the trade fair.

He added: “The safety, soundness and stability of the financial sector cannot be downplayed in the economy of any nation. The NDIC was established by the federal government in 1989 under the NDIC Decree of 1988 which had been replaced by the NDIC Act No 16 of 2006 to insure deposit liabilities of licensed financial institutions in Nigeria.

“The key mandate of the Corporation is to provide financial guarantee to depositors of the insured financial institutions in the event of failure with a view to enhancing public confidence in the nation’s banking system. Therefore, the NDIC has a crucial role to play towards the safety, soundness and stability of the financial system.”

He said further: “It is instructive for me to say that the NDIC has been resolutely committed to its mandate since it commenced operations in the last two decades. The corporation has also contributed immensely to the various banking reforms that had been witness in the Nigerian banking sector and the dynamics of the global financial market.”

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